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NEW ORLEANS (Reuters) - Oil major BP Plc expects more than 90 percent of the world's shipping fleet will comply with new regulations slashing sulphur levels ships are allowed to burn starting 2020, a company executive said on Tuesday.

"Potential non-compliance is a significant issue that the market has been contending with," Jason Breslaw, who leads BP's distillate trading origination across the Americas, said at an industry conference in New Orleans.

Breslaw said BP expects only about 9 percent of the industry is likely to be non-compliant as the rule takes effect. The compliance level has significant implications for demand for high-sulphur fuel oil; BP's estimates fall well short of other analyst estimates of about 30 percent non-compliance.

The IMO has said there would be no delays or exceptions to the coming rules, whether or not the industry takes the steps it needs to comply, and warned that all parties face consequences if they do not play their part.